How much does a house in Dubai cost?

Dubai fascinates with its breathtaking architecture and first-class residential property. Many Germans dream of a House in Dubai. But what do you actually have to put on the table for such a house in Dubai? In this article, we want to answer this question and provide you with the details you need to understand the cost of owning a home in Dubai.

How much does a house in Dubai cost?

The cost of a house in Dubai is influenced by various aspects. According to current figures, the price of an average house in Dubai is around AED 1.7 million (approximately €430,000). However, this sum can vary greatly depending on the location, size and quality of the furnishings. You can pay several million euros for a luxury villa in Dubai.

Cost of a house by location

For some of the most popular areas for houses and villas in Dubai, we have listed the prices from which you can buy a house there.

• Palm Jumeirah - AED 10M (⁓€2,540,000)
• Dubai Hills - AED 4.4M (⁓1,118,000€)
• Tilal Al Ghaf - AED 4M (⁓1,016,000€)
• DAMAC Hills - AED 4M (⁓1,016,000€)
• Emirates Living - AED 2.8M (⁓712.000€)
• Arabian Ranches 3 - AED 2.7M (⁓686.000€)
• Jabal Ali first - AED 2.4M (⁓610.000€)
• Madinat Al Mataar - AED 1.8M (⁓457.000€)
• Villanova - AED 1.6M (⁓407.000€)
• Akoya Oxygen - AED 1.2M (⁓304.000€)

Based on the above data, you can therefore get a better idea of the current price of a house in Dubai so that you can move forward with your investment decision and planning for the property.

Further costs for buying a house

Now we come to the second point - the total cost of buying a house in Dubai. In addition to the actual price of the property, there are also hidden costs that need to be uncovered.

Upfront fee for finished houses (DLD fee)

This is a mandatory fee that you must pay to the Dubai Land Department (DLD).

• The DLD fee is 4% of the property value
• 520 AED Fees for the issuance of the title deed
• AED 4,200 Administration fees for the DLD

And as the property must be registered with the DLD within 60 days of the transaction, otherwise the purchase will be deemed invalid. In theory, the 4 % fees should be paid by both the buyer and the seller, but in reality, the buyer pays the entire fees to the DLD.

Additional costs to be considered

1. First down payment
For both finished and off-plan homes, the buyer must pay the price of the mortgage and this initial deposit secures the right to purchase on behalf of the buyer.

2. Fees for the mortgage

• Fee for arranging the mortgage through the bank - 1% of the loan amount of the property + 5% VAT.
• Property valuation fee - AED 2,500 to AED 3,500 + 5% VAT.

Those who wish to cover the costs of buying a property in Dubai must pay the aforementioned fee to the bank.

3. Service fees
Apart from the above charges, buyers will have to pay an amount of DLD for the maintenance of the property as per the RERA Service Charge and Maintenance Index. The charges are calculated according to the area of the property per square foot.
The maintenance includes a communal area, swimming pool, parks, security, water, lift and other amenities that are accessible.

4. Fees for the insurance

Although it is not considered an important part of Dubai, it is still recommended for property buyers. It essentially covers damage or loss due to events, natural disasters or theft.

• House and contents insurance - AED 1,000
• Life insurance - 0.4-0.8% per year on the decreasing loan balance.

Summary

Taking into account both acquisition costs and ancillary costs, Dubai proves to be a more cost-efficient option compared to 28 other international metropolises. This offers investors the opportunity to participate in a high-yielding property while being fully informed about the current market prices in Dubai and the total costs, including all applicable fees and additional costs.

Home Dubai is your competent partner for comprehensive advice and identification of the best property investments for you. We guarantee 1001TP3 support and are committed to finding the most profitable property investments. Property listings in Dubai to be provided.